AMD Intends to Produce “Some” of Its GPUs at The Foundry Company Using 32nm Process Tech

Chief executive officer of Advanced Micro Devices officially outlined plans to utilize manufacturing capacities of The Foundry Company, a joint venture between AMD and Advanced Technology Investment Company, for manufacturing of ATI’s graphics processing units (GPUs). Apparently, TFC will only be able to produce GPUs using 32nm process technology, not earlier.

“We will be ramping Fab 38 and we will be installing into Fab 38 a 32nm bulk process for the purpose of enabling the foundry business. We will also be moving some GPU product into the Foundry Company in order to help the Foundry Company get off the ground relative to that foundry type business. Clearly, as a result of having two really good suppliers on the GPU side we got an opportunity to improve our costs there and capability,” said Dirk Meyer, chief executive and officer of AMD, during a conference call with financial analysts.

AMD has already confirmed that it plans to use capacities of the Foundry Co. to manufacture GPUs by ATI, graphics products group of AMD. However, this is the first time when AMD reveals details: it intends to use 32nm process technology, which may mean that the first GPUs made at TFC will be available sometime in 2010.

AMD has reported third quarter 2008 revenue from continuing operations of $1.776 billion, including process technology license revenue of $191 million. Third quarter 2008 revenue increased 32%compared to the second quarter of 2008 and 14% compared to the third quarter of 2007.

In the third quarter of 2008, AMD reported a net loss of $67 million, or $0.11 per share. For continuing operations, third quarter 2008 income was $41 million, or $0.07 per share, including the process technology license revenue of $191 million, or $0.31 a share. Third quarter 2008 operating income was $131 million. Loss from discontinued operations was $108 million, or $0.18 a share.